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A well-developed transportation system plays vital role in economic development of the country. The huge increase in vehicular population creates traffic congestions on city roads. Thus, to reduce traffic bottleneck, creation of new road infrastructure as well as improvement of existing one has long term economic and social benefits. The economic benefits are calibrated on the basis of Economic Internal Rate of Returns (EIRR). The Mumbai and Pune are the major cities of Maharashtra state, due to economic and industrial development in those cities faces frequent and heavy traffic jam on highway connecting to both cities. The scope of present study consists of evaluating the impact on traffic and checking economic viability of the project. Strengthening and widening for six lanes flexible pavement which named as, Mumbai Pune section of NH-4. The HDM-4 is software used for checking the engineering and economic viability of the investment in this road project. It was observed that results obtained with improvement alternatives are economic viable.

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